By Rebecca Melvin
New York, Oct. 7 - Avis Budget Group Inc. priced an upsized $300 million of five-year convertible senior notes at par late Wednesday to yield 3.5% with an initial conversion premium of 30%, according to a syndicate source.
There is an over-allotment option for an additional $45 million, which was upsized from $37.5 million.
Initially the deal was going to be $250 million in size.
Pricing came at the cheap end of revised talk for the coupon, which was 3.25% to 3.5%, revised from initial talk of 3.5% to 4%; and at the adjusted point for the initial conversion premium, which was 30%, revised from 25% to 30%.
J.P. Morgan Securities Inc., Deutsche Bank Securities Inc., Barclays Capital Inc., Merrill Lynch & Co. and Citigroup Global Markets Inc. were bookrunners of the Rule 144A offering, with Calyon, RBS Securities Inc. and Scotia Capital (USA) Inc. as co-managers.
The notes will be non-callable and may not be put.
The convertibles will have dividend and takeover protection.
Proceeds will be used for general corporate purposes, to repay debt and to fund a convertible note hedge and warrant transaction.
Avis is a Parsippany, N.J.-based car and truck rental company.
| Issuer: | Avis Budget Group Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $300 million, upsized from $250 million
|
| Greenshoe: | $45 million, upsized from $37.5 million
|
| Maturity: | Oct. 13, 2014
|
| Bookrunners: | J.P. Morgan Securities Inc., Deutsche Bank Securities Inc., Barclays Capital Inc., Merrill Lynch & Co., Citigroup Global Markets Inc.
|
| Co-managers: | Calyon, RBS Securities Inc., Scotia Capital (USA) Inc.
|
| Coupon: | 3.5%
|
| Price: | Par, $1,000
|
| Yield: | 3.5%
|
| Conversion premium: | 30%
|
| Conversion price: | $16.25
|
| Conversion ratio: | 61.5385
|
| Call protection: | Non-callable
|
| Puts: | No puts
|
| Price talk: | Revised to 3.25%-3.5%, up 30%, from 3.5%-4%, up 25%-30%
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | Oct. 7
|
| Settlement date: | Oct. 13
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: CAR
|
| Stock reference price: | $13.50
|
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